Go First CEO assures employees: April salaries will be paid in full, no salary reductions

CEO of Go First, Kaushik Khona, has provided assurance to employees that the company will fully pay salaries for April and the subsequent periods without implementing any cuts. However, a specific timeline for these payments was not mentioned.

During his address to the pilots, the CEO mentioned that the airline is actively pursuing "interim funds" and has received investment interest from Middle-Eastern carriers, reported The Hindu Business Line.  

However, final approval from the Committee of Creditors (CoC) and compliance with the Insolvency and Bankruptcy Code (IBC) norms are required. The formation of the CoC is scheduled for Tuesday, and the Interim Resolution Professional (IRP) will present a business plan to them.

During a meeting with the company's pilots on Saturday, Khona, the CEO, spent over two hours addressing various questions posed by the pilots. In his address, Khona specifically focused on three key areas: salaries, operations, and the capital situation.

Expressing his apologies to the employees, Khona acknowledged that the airline has faced challenges since the onset of the Covid pandemic, resulting in monthly salary delays and difficulties in maintaining regularity. 

He emphasised that despite the worsening situation, salaries for April will be paid in full, and he assured the employees that there will be no pay cuts moving forward. Khona emphasised the commitment to ensuring that all employees are paid their complete salaries.

With a workforce of 7,000 employees and an indirect employment impact on over 10,000 individuals, Khona requested the pilots to exercise patience during this period. He expressed his concern about other airlines taking advantage of the situation and urged his employees not to be swayed by such opportunistic actions. 

Khona highlighted that the National Company Law Tribunal (NCLT) had specifically instructed the company to retain its employees, emphasising the importance of adhering to this directive.

Responding to inquiries about the airline's working capital and its ability to pay employees, Khona stated that in April, the Wadias had infused ₹280 crore into the company. Additionally, the company had access to an Emergency Credit Line loan facility of ₹280 crore.

Khona stated that the airline was currently in the process of securing "interim funding" and recovering refunds from various sources, including outstanding receivables. However, he clarified that these actions were subject to approval from the Committee of Creditors (CoC). 

Additionally, Khona mentioned that there has been investor interest from the Middle East and a Middle Eastern carrier, but again, these potential investments would need approval in accordance with the Insolvency and Bankruptcy Code (IBC) norms.

Despite multiple attempts to reach out via messages, emails, and calls, no response was received from the company or its CEO at the time of press. Regarding speculations about the airline's operations being restored on May 24, it was clarified that the company has not officially communicated any such plans. 

The restart on May 24 is not feasible as the Committee of Creditors (CoC) has not yet been formed. The approval of the business plan by the CoC is necessary before any further steps can be taken. However, it was assured that the company is actively working towards restarting operations as soon as possible, potentially within the next two weeks.

Khona explained that the airline needs to prepare for multiple legal disputes as lessors and other vendors have expressed their grievances. He mentioned that the company intends to resume operations using 26 aircraft. 

When an employee raised a question about the surplus pilots and crew members, Khona reassured that as the airline gradually ramps up its operations to reach its previous peak, there will be opportunities for the remaining employees to be involved.

Additionally, Khona stated that the formation of the Committee of Creditors (CoC) is expected to take place in the upcoming week. Subsequently, the Insolvency Resolution Professional (IRP) will begin the process of assessing claims from both operational and financial creditors.